Fill This Form To Receive Instant Help
Fill This Form To Receive Instant Help
Homework answers / question archive / PRINTER End of Chapter Question 10
PRINTER End of Chapter Question 10.20 Find the missing figures for each of the independent cases shown below. (Hint: reconstruct income statement for each scenario) Selling price/unit Variable costs/unit Units sold Contribution margin (total) 220,000 Profit (loss) Fixed costs 150,000 75 10,000 30 25 21,000 0 4 2 4,000 (500) 70 500 15,000 8,500 25 1,000 7,000 (2,000) * (Round this answer to two decimal places)
Currently, the selling price per unit of product X is $300. The variable cost per unit is $250 and the total fixed costs are $567,000. If the company required a net profit of $32,000, how many units would need to be sold? Calculate the following: (Round answers to 0 decimal places, e.g. 5,275.) The contribution margin per unit $ The number of units to be sold to break even The total sales achieved at break-even $ The break-even in units required to make $32,000 net profit Using the above information, a proposal is being evaluated to increase the unit selling price to $320. Calculate the following: (Round answers to 0 decimal places, e.g. 5,275.) The number of units to be sold to break even based on the new selling price The total sales achieved at the new selling price to break even $
| Selling Price/Unit | Variable Costs/ Unit | Units Sold | Contribution Margin | Fixed Costs | Profit(Loss) | Formula |
| 75 | 53 | 10000 | 220000 | 150000 | 70000 | (75*10000)-220000, (220000-150000) |
| 30 | 25 | 4200 | 21000 | 21000 | 0 | 21000/(30-25), (21000-0) |
| 4 | 2 | 1750 | 3500 | 4000 | -500 | 3500/(4-2)/(4000-500) |
| 100 | 70 | 500 | 15000 | 8500 | 6500 | 70+(15000/500), (15000-8500) |
| 25 | 20 | 1000 | 5000 | 7000 | -2000 | (5000/1000),(7000-2000) |
| Contribuiton Margin per unit= | Selling Price per unit-Variable cost per unit | (300-250)= | 50 | ||
| Number units to be sold to break even= Fixed Cost/ Contribution Margin per unit | 567000/50= | 11340 | |||
| Sales at break even= Number units required * Selling price per unit | 11340*300= | 3402000 | |||
| Units required to make 32000= (Target Profit+Fixed Cost)/contribution margin per unit | (32000+567000)/50= | 11980 | |||
| Number units to be sold to break even= Fixed Cost/ Contribution Margin per unit | 567000/(320-250)= | 8100 | |||
| Sales at break even= Number units required * Selling price per unit | 5670*320= | 1814400 | |||
